The current stage of global economic development is characterized by the increasing role of innovation as a key factor of competitiveness. Of particular interest in this context is the experience of China, where small innovative businesses have become a backbone element of the national economy, providing basic employment, contributing to GDP and creating new technologies. The purpose of this study is to analyze the specifics, mechanisms of government support and prospects for the development of small innovative businesses in China. Based on a systematic and comparative analysis, the article identifies key support institutions (technoparks, incubators, venture funds), analyzes financial and legal instruments of state policy, and identifies current problems (foreign trade restrictions, narrow financing channels). The systematic approach is emphasized, ensuring sustainable growth of the sector even in the face of global challenges. Special attention is paid to the unique features of the Chinese model: the close integration of business, government and science, the flexibility of SMEs and the focus on creating their own technology brands. Key problems have been identified — foreign trade competition, limited access to financing and imperfect legislation — and countermeasures based on the experience of the PRC have been proposed. The conducted research allows us to conclude that China's integrated and multi-level approach is highly effective, the experience of which can be adapted in other countries, including Russia, to stimulate technological entrepreneurship and ensure sustainable economic growth.